Sunday, June 8, 2014

Alternate View: Economic Crisis Will Cause Stock Markets To Skyrocket: “We’re the Only Game in Town”

Mac Slavo
June 7, 2014

Could you imagine the Dow Jones Industrial Average rising to over 25,000 points, from its current all-time highs of 16,900?
Given the economic malaise facing the entire globe many would argue that such a value is simply not possible and as soon as it becomes clear later this summer that the U.S. has officially entered another recession stock markets will inevitably crash full-force into a long-term deflationary environment.
But what if the opposite happens? What if the panic caused by a collapsing global economy leads to a limited crash and then sends stock markets soaring?
This is the forecast being proposed by well known cyclical theorist Martin Armstrong, whose past predictions were so accurate that he identified, nearly to the day, the Savings & Loan crisis, the collapse of the Russian Ruble and the crash of Japan’s stock markets.
Even Armstrong himself suggests that his ideas run counter to what one might expect to happen given the state of the world’s political, financial and economic affairs, but stock markets could nonetheless skyrocket 50% or higher from where they are today.
Well, I think the best thing to do is clearly stay in the United States right now. Get out of any emerging markets because what you are going to have is: China is rattling its sabers against Japan and South East Asia; you have all kinds of turmoil in Eastern Europe; and I think you’re going to probably see that start to pick up quite sharply after September. So you don’t want to be involved in those types of assets. I would stay home clearly.
The U.S. stock market, although it sounds a bit crazy, it’s liable to go up very dramatically. I would think we could go up 50% at least. But it’s going to depend upon when the capital flows start coming in very dramatically, and they’ll come when you start to see those types of geopolitical problems [along with]…economic problems from Europe. But, I mean, there will be more dips—one more little crash first—and then it’s going to take off.

You get a lot of these dollar haters, I call them. But what are you supposed to have as an alternative? The Euro is an absolute basket case… Canada doesn’t have a big enough economy… Australia doesn’t… Britain doesn’t… Japan, forget it… So what are you down to? Are you going to use Rubles or Yuan? The dollar is the world reserve currency for a reason… and effectively we are the largest economy and right now we are the only ones really holding anything up.
It’s a pretty bad recession in China… in Russia… Europe is a basket case… France is on the verge of bankruptcy… it’s crazy everywhere…We’re the last place that is still booming… it’s not as much as it used to be, but we’re still positive. That will turn down next year and when that does the rest of the world… as they say when the U.S. catches a cold the rest of it gets the flu.
The capital flows will move into this direction also because Europe is hunting capital dramatically… The IMF is saying they should just confiscate 10% of everybody’s accounts… If I say I’m going to punch you in the face are you just going to stand there and let me punch you? You’re either gonna move or fight back.
People act in anticipation.
So, capital has been flowing to the United States. The top end real estate in New York, Florida, California, is booming. Why? It’s mostly foreign money coming in. So that supports the dollar. And if you then have more geopolitical problems with Russia, etc., money is going to pour here again, the same way it did with WWI and WWII. If you’re blowing everything up and banks aren’t safe, you put your money on the first ship and you bring it over here…
We’re really the only game in town and that capital will come here as the geopolitical movement develops.
Full audio interview: Financial Sense Newshour with Jim Puplava
Sourced from Armstrong Economics via Prepper Website
Capital flows, as Armstrong notes, are the key variable to keep an eye on. Historically, global investors have always sought safe haven in the United States because up until now America has never defaulted on its Treasury issues, making it one of the last perceived bastions of financial security on earth. Yes, it sounds ridiculous considering the insurmountable debt being held by the U.S. government, but according to Armstrong global investors will still turn to the United States when all else fails, just as they have done during every major crisis in recent history.
But before you commit to the idea that everything will be fine and dandy as a result of potentially hundreds of billions of dollars making their way into the United States, keep in mind that capital flowing into domestic markets will further contribute to a recessionary environment by increasing the value of the dollar and decreasing exports, so this effect won’t necessarily signal boom times or economic health.
In fact, Martin Armstrong says that we should begin seeing serious cracks forming here in the United States some time next year. Those problems will revolve around America’s debt crisis and the destruction of our domestic economy. The end result, suggests Armstrong, will be one that’s been witnessed throughout history and will lead to dire repercussions:
People will not fight if they’re fat and happy. Turn the economy down and you get war. World War II follows what? The great depression.
This is the way it is. People don’t go to war if everything is really great. But if you start losing things then you get aggravated… who caused this, etc…
Historically what will happen is that the economy turns down aggressively and the people get angry. Now, you have a choice. They’re going to get angry at government and they’re going to come after you. Or, you find somebody else for them to get angry at and you say ‘hey, it’s not me it’s them’…

Absolutely [we are in danger of going from a cold war to a hot war].
One way or the other, whether stocks rise or fall, we’ve entered an unprecedented period in world history.
The end result, regardless of how we get there, will likely culminate in a war unlike anything human civilization has ever witnessed before as politicians the world over angle to convince their citizenry that someone else is to blame for their problems.
Though we can’t predict with certainty the dates or sequences of events that will lead to the eventual downfall of the system as we know it today, we can, at the very least,prepare in advance and insulate ourselves against the brunt of the hit when it does happen.
Deep down, though many refuse to admit it, we know that something just isn’t right.

Friday, June 6, 2014

Obama’s War On Coal Is Going To Kill Jobs And Sent Electricty Rates ‘Skyrocketing’

Michael Snyder
American Dream
June 6, 2014

When Barack Obama was running for president in 2008, he stated that under his plan “electricity rates would necessarily skyrocket”.  Well, now it looks like he is finally getting around to keeping his promise.  New EPA rules that are designed to cripple the coal industry could send electricity rates soaring by up to 40 percent in many rural areas.  And even though we have enough coal in the ground to provide hundreds of years of energy at current levels of consumption, Obama’s plan is going to force large numbers of coal plants to completely shut down because they are simply going to become too expensive to operate.  If Americans living in rural communities didn’t care for Obama before, they really are not going to like him much when these new EPA regulations start kicking in.
Most people don’t remember this, but Barack Obama was very clear about what he intended to do to the coal industry even before he was elected the first time.  According to fact-checking site Politifact, Obama did tell the San Francisco Chronicle that “electricity rates would necessarily skyrocket” if he had his way…
It didn’t take us long to find Barack Obama’s original quote, which came from a videotaped interview he did with the San Francisco Chronicle editorial board very early in the presidential campaign, January 2008.
“Under my plan of a cap-and-trade system, electricity rates would necessarily skyrocket,” Obama told the Chronicle . “Coal-powered plants, you know, natural gas, you name it, whatever the plants were, whatever the industry was, they would have to retrofit their operations. That will cost money. They will pass that money on to consumers.”
Fortunately, political expediency and the Republicans in Congress have blocked a lot of what Obama intended to do up until now.
But at this point Obama is a lame duck president that does not have another election to worry about.  So now he can start pushing a lot of things that he may have been hesitant to do so before for political reasons.
Unfortunately, this little pet project of Obama’s is going to end up costing millions of U.S. consumers a lot of money.  In fact, it is being projected that the new EPA rules could raise electricity rates in some rural areas by up to 40 percent
At least six electric cooperative utilities across the U.S. mid-and-southwest could raise electricity rates up to 40 percent if the Environmental Protection Agency imposes new permitting regulations on coal-fired power plants.
The regulations would cost Deseret Power Electric Cooperative (DPEC) $200 million to install advanced equipment to qualify for a Clean Air Act Title V permit.
DPEC is made up of six rural electrical cooperatives that serve more than 45,000 customers in Utah, Nevada, Wyoming and Colorado. Rural cooperatives have been heavily opposed to excessive EPA regulations targeting coal plants, which they say raise rates for their customers.
And it turns out that “Obamacare for the air” is going to be far more harsh than many of Obama’s toughest critics even anticipated…
Administrator McCarthy’s draconian proposals are turning out to be even worse than many critics expected. In a May 30 commentary, the Cato Institute’s Dr. Patrick J. Michaels, who is past president of the American Association of State Climatologists and a research professor of Environmental Sciences at the University of Virginia for 30 years, speculated that the new regulations would most likely require a 20-percent reduction in allowable carbon dioxide emissions. “The only way this will be possible,” he said, “will be by upgrading almost all combustion units, and the ultimate cost of the upgrades will make coal noncompetitive with much-less-expensive natural gas–fired facilities.”
But, lo and behold, when McCarthy released the new regulatory proposal it was far worse, mandating 30-percent reduction in CO2 emissions.
“Climate change, fueled by carbon pollution, supercharges risks to our health, our economy and our way of life,” EPA Administrator Gina McCarthy said, in announcing the Obama administration’s Clean Power Plan. “This plan will clean the air we breathe while helping slow climate change so we can leave a safe and healthy future for our kids.”
But this is not just about cleaner air.
The truth is that this is what Obama always intended – a war on coal.
For example, back in 2008 candidate Obama made the following statement regarding coal…
“So, if somebody wants to build a coal plant, they can — it’s just that it will bankrupt them, because they are going to be charged a huge sum for all that greenhouse gas that’s being emitted.”
And a key environmental adviser to Obama, Professor Daniel Schrag, said the following during an interview with the New York Times
“Politically, the White House is hesitant to say they’re having awar on coal. On the other hand, a war on coal is exactly what’s needed.”
This is extremely unfortunate, because we have enough coal to help meet our energy needs for a very, very long time.  According to an article by William F. Jasper, the federal government admits that we have enough coal to last us approximately 250 more years…
According to the federal Energy Information Agency (EIA), 45 percent of the country’s annual four trillion kilowatt-hours of electricity are generated from coal. And, says the EIA, we have a Demonstrated Reserve Base of 496 billion short tons of coal, of which 272 billion tons are considered recoverable with current technology. With U.S. usage at 1.1 billion tons per year, we have about 250 years’ supply at the present rate of consumption.
But instead, these new EPA regulations are going to force coal plants to shut down all over the nation, and the rest will be forced to raise rates substantially.
According to a Reuters article from last year, it was being projected that more than 200 coal plants would be shut down in the United States over the next decade.
And now that these new EPA regulations are much harsher than anticipated, it is inevitable that the number of coal plants that will end up closing will be much higher than that.
At a time when the U.S. economy is already struggling, this is something that we do not need.
In the end, thousands of good jobs will be lost and U.S. consumers will be shelling out millions of dollars more for electricity than they otherwise should have thanks to Obama’s war on coal.
Hopefully someone out there will fight these regulations while there is still time to do so.

VIDEO: Antony C. Sutton Exposes How Wall St. Banksters And U.S. Corporations Financed The Russian Communist Revolution And The Rise Of Nazi Germany

Greed Is Good? Where Will America’s Sick Obsession With Wealth And Money End?

 The Economic Collapse
By Michael Snyder
June 5th, 2014

Everywhere you look, Americans appear to be extremely obsessed with wealth and money.  These days, networks such as CNN endlessly run "news stories" with titles such as "Best cars for the super rich".  We have television shows where people proudly show off how wealthy they are, and it seems like Hollywood is putting out an endless parade of movies that glorify the lifestyles of the elite.  We have hordes of motivational speakers and "life coaches" that will teach you how to be "more successful" in life, and every small movement in the stock market is carefully monitored by the mainstream news media.  Even in the world of faith, we have an entire class of ministers known as "prosperity preachers", and many of those ministers wear that label quite proudly.  Yes, those that grew up in the 1980s may have been the "greed is good" generation, but the truth is that they didn't have anything on us.  As a society we love money, and we are not ashamed to admit it.  In fact, there are times we absolutely revel in it.  For example, Time Magazine published an article this year entitled "Science Proves It: Greed Is Good" and hardly anyone even raised an eyebrow.  But where will America's sick obsession with wealth and money end?  Could it end up destroying us?
I got the idea for this article when I was browsing through CNN's website.  The following are eight "news stories" about wealth that were featured on CNN just on Thursday alone...

#1 "The richest Americans in history"
#2 "How much do you need to be happy?"
#3 "Where are the super rich?"
#4 "From broke to billionaire"
#5 "Homes: What $25 million buys around the world"
#6 "Best cars for the super rich"
#7 "America's homes are bigger than ever"
#8 "Mega yacht with a movie theater"

This is what passes for news these days?
It has been said that we tend to talk about the things that we are obsessed with.
And CNN is clearly obsessed with wealth.
Not that there is anything wrong with having money.
If none of us had any money, we would all be homeless and starving.  So the truth is that money can be very useful.  But when it becomes an idol, that is when it becomes a problem.
And because we have taught entire generations of Americans that becoming wealthy is one of the primary goals in life, it is creating a tremendous amount of envy, jealousy, frustration and anger among those that have not been able to become wealthy.
In recent years, the level of bitterness and resentment that the rest of the nation has toward the very wealthy has risen to an unprecedented level.  It has become exceedingly apparent that the system is designed to funnel wealth to the very top of the food chain, and many of those at the bottom of the food chain are starting to become extremely upset about this.
Since the last financial crisis, almost all of the income gains have gone to the top one percent of all income earners.  The following comes from a recent Huffington Post article...
Economic statistics show that incomes for the top 1 percent of U.S. households soared 31 percent from 2009 through 2012, after adjusting for inflation, yet inched up an average of 0.4 percent for those making less. Many economists are sounding alarms that the income gap, greater now than at any time since the Depression, is hurting the economy by limiting growth in consumer spending.
And income inequality has become such a hot topic that it has even produced a New York Times bestseller by a French economist named Thomas Piketty.  This is what CBS News recently had to say about his book...
His book has landed on that debate like a bomb. Piketty's thesis: that the rate of return on capital, such as real estate, dividends and other financial assets, is racing away from the rate of growth required to maintain a healthy economy. If that trend continues for an extended period of time -- if wealth becomes ever more concentrated in the hands of a few -- then inequality is likely to get worse, says Piketty, 43, who started his academic career as an assistant professor at the Massachusetts Institute of Technology and who now teaches at the Paris School of Economics.
Another reason "Capital" has caught the public's attention is that inequality is evident in what are by now a host of familiar symptoms. Stagnant pay, except among the super-rich. Soaring health care and education costs. The diminished expectations commonly found in young, especially those lacking college degrees, and old alike, as retirement becomes something to endure rather than to enjoy.
It would be foolish to deny that the gap between the rich and the poor is growing.  Even as the stock market reaches unprecedented heights, the middle class is dying and one out of every five children in America is living in poverty.
On a global scale, the wealthiest one percent now have 65 times more wealth than the entire poorest half of the global population does.
That is an astounding figure.
Most people don't realize this, but the ultra-wealthy have approximately 32 trillion dollars (that we know about) stashed in offshore banks around the planet.  That amount of money would almost be about enough to pay off the entire U.S. national debt and buy every good and service produced in the United States for an entire year.
Meanwhile, the poorest half of the world's population only owns about 1 percent of all global wealth, and about a billion people throughout the world go to bed hungry every night.
If greed was going to save the world, it would have done it by now.  At this point, the wealthy have accumulated more wealth than they ever have before.  For example, according to Zero Hedge the total amount of wealth in the U.S. has just hit a brand new record high...
Earlier today the Fed released its latest Flow of Funds report, which showed that in the first quarter household net worth rose from last quarter's $80.3 trillion to a new record high of $81.8 trillion, driven by a $1.5 trillion increase in total assets while household liabilities were virtually unchanged in the quarter. And since the Fed is onboarding all the liabilities why should households bother with debt: that's what the central bank balance sheet is for.
As for the proceeds, they go to the mega rich: of the $81.8 trillion in net worth, 70.4% of the total amount or $67.2 trillion, was in financial assets: the higest it has ever been courtesy of just one person: Ben Bernanke, and to a far lesser extent Janet Yellen who however is tasked with picking up Bernanke's pieces.
But of course most people who are rich are only rich on paper.
As noted above, 67.2 trillion dollars of the total of 81.8 trillion dollars of wealth in this nation is made up of financial assets.
So what happens if there is a major financial crisis (such as the derivatives bubble bursting) which causes the total amount of financial wealth in the United States to drop by 50% or more?
What would such an event do to our country?
We are so obsessed with wealth and money that it is truly frightening to think about how we would react as a society if it was taken away.
But this current financial bubble will not last forever.
At some point it will come to an end.
When it does, will our society throw a massive temper tantrum?

The Greatest Generation: Sacrificed for the Bankers

Kurt Nimmo
June 6, 2014

Obama traveled to France and read from a teleprompter at Omaha Beach where over 9,000 Americans died. Obama said “blood soaked the water (and) bombs broke the sky.” Later he accompanied France’s socialist president, Francois Hollande, as a wreath was placed at a colonnade near thousands of stone crosses on the graves of the fallen.
June 6 in the 70th anniversary of D-Day. The media is out in full force and world leaders in full regalia as parachute drops are recreated, fireworks are displayed, and the IMAX film “D-Day Normandy 1944,” narrated by Tom Brokaw, is screened.

Over 60 million people, or 2.5% of the world population, were killed during the Second World War. Responsibility for the staggering loss of life and property is uniformly placed on Adolf Hitler and the Nazis. Excluded from the official history is the fact Hitler and the National Socialists would not have risen to power without the help of international bankers and American and German corporations.
Professor Antony C. Sutton’s Wall Street and the Rise of Hitler documents how key Wall Street financiers and other international bankers subsidized Hitler and the Nazis. Sutton documents how J.P. Morgan, T. W. Lamont, the Rockefeller interests, General Electric Company, Standard Oil, National City Bank, Chase and Manhattan banks, Kuhn, Loeb and Company, and dozens of other business interests supported and subsidized Hitler and the Nazis.
“American companies associated with the Morgan-Rockefeller international investment bankers,” Sutton writes, “were intimately related to the growth of Nazi industry.” General Motors, Ford, General Electric, DuPont and “the handful of U.S. companies intimately involved with the development of Nazi Germany were — except for the Ford Motor Company — controlled by the Wall Street elite — the J.P. Morgan firm, the Rockefeller Chase Bank and to a lesser extent the Warburg Manhattan bank.”
The late Senator Prescott Bush, the grandfather of former president George W. Bush, was a director and shareholder of companies profiting from the Nazi war machine and its destruction of Europe. In 2004 The Guardian newspaper “obtained confirmation from newly discovered files in the US National Archives that a firm of which Prescott Bush was a director was involved with the financial architects of Nazism,” write Ben Aris in Berlin and Duncan Campbell. “Remarkably, little of Bush’s dealings with Germany has received public scrutiny, partly because of the secret status of the documentation involving him.”

 Remarkable or not, much of the information linking the bankers and corporations to the Nazis is ignored by the corporate media and academia. Instead of unvarnished truth – Hitler was funded by Wall Street and a clique of international bankers profited from unprecedented mass murder – we are fed a diet half truth and outright lies and fabrication about the second deadliest war in history (the first being Muslim conquest of the Indian subcontinent more than five hundred years ago).

Thursday, June 5, 2014

Half The Country Makes Less Than $27,520 A Year And 15 Other Signs The Middle Class Is Dying

Michael Snyder
The Economic Collapse
June 5, 2014

If you make more than $27,520 a year at your job, you are doing better than half the country is.  But you don’t have to take my word for it, you can check out the latest wage statistics from the Social Security administration right here.  But of course $27,520 a year will not allow you to live “the American Dream” in this day and age.  After taxes, that breaks down to a good bit less than $2,000 a month.  You can’t realistically pay a mortgage, make a car payment, afford health insurance and provide food, clothing and everything else your family needs for that much money.
That is one of the reasons why both parents are working in most families today.  In fact, sometimes both parents are working multiple jobs in a desperate attempt to make ends meet.  Over the years, the cost of living has risen steadily but our paychecks have not.  This has resulted in a steady erosion of the middle class.  Once upon a time, most American families could afford a nice home, a couple of cars and a nice vacation every year.  When I was growing up, it seemed like almost everyone was middle class.  But now “the American Dream” is out of reach for more Americans than ever, and the middle class is dying right in front of our eyes.
One of the things that was great about America in the post-World War II era was that we developed a large, thriving middle class.  Until recent times, it always seemed like there were plenty of good jobs for people that were willing to be responsible and work hard.  That was one of the big reasons why people wanted to come here from all over the world.  They wanted to have a chance to live “the American Dream” too.
But now the American Dream is becoming a mirage for most people.  No matter how hard they try, they just can’t seem to achieve it.
And here are some hard numbers to back that assertion up.  The following are 15 more signs that the middle class is dying…
#1 According to a brand new CNN poll, 59 percent of Americans believe that it has become impossible for most people to achieve the American Dream…
The American Dream is impossible to achieve in this country.
So say nearly 6 in 10 people who responded to CNNMoney’s American Dream Poll, conducted by ORC International. They feel the dream — however they define it — is out of reach.
Young adults, age 18 to 34, are most likely to feel the dream is unattainable, with 63% saying it’s impossible. This age group has suffered in the wake of the Great Recession, finding it hard to get good jobs.
#2 More Americans than ever believe that home ownership is not a key to long-term wealth and prosperity…
The great American Dream is dying. Even though many Americans still desire to own a home, they are losing faith in homeownership as a key to prosperity.
Nearly two-thirds of Americans, or 64%, believe they are less likely to build wealth by buying a home today than they were 20 or 30 years ago, according to a survey sponsored by non-profit MacArthur Foundation. And nearly 43% said buying a home is no longer a good long-term investment.
#3 Overall, the rate of homeownership in the United States has fallen for eight years in a row, and it has now dropped to the lowest level in 19 years.
#4 52 percent of Americans cannot even afford the house that they are living in right now…
“Over half of Americans (52%) have had to make at least one major sacrifice in order to cover their rent or mortgage over the last three years, according to the “How Housing Matters Survey,” which was commissioned by the nonprofit John D. and Catherine T. MacArthur Foundation and carried out by Hart Research Associates. These sacrifices includegetting a second job, deferring saving for retirement, cutting back on health care, running up credit card debt, or even moving to a less safe neighborhood or one with worse schools.”
#5 According to the U.S. Census Bureau, only 36 percent of Americans under the age of 35 own a home.  That is the lowest level that has ever been measured.
#6 Right now, approximately one out of every six men in the United States that are in their prime working years (25 to 54) do not have a job.

#7 The labor force participation rate for Americans from the age of 25 to the age of 29 has fallen to an all-time record low.
#8 The number of working age Americans that are not employed has increased by 27 million since the year 2000.
#9 According to the government’s own numbers, about 20 percent of the families in the entire country do not have a single member that is employed at this point.
#10 This may sound crazy, but 25 percent of all American adults do not even have a single penny saved up for retirement.
#11 As I noted in one recent article, total consumer credit in the United States has increased by 22 percent over the past three years, and 56 percent of all Americans have “subprime credit” at this point.
#12 Major retailers are shutting down stores at the fastest pace that we have seen since the collapse of Lehman Brothers.
#13 It is hard to believe, but more than one out of every five children in the United States is living in poverty in 2014.
#14 According to one recent report, there are 49 million Americans that are dealing with food insecurity right now.
#15 Overall, the U.S. poverty rate is up more than 30 percent since 1966.  It looks like LBJ’s war on poverty didn’t work out too well after all.

Sadly, it does not appear that there is much hope on the horizon for the middle class.  More good jobs are being shipped out of the country and are being lost to technology every single day, and our politicians seem convinced that “business as usual” is the right course of action for our nation.
Unless something dramatic happens, it is going to become increasingly difficult to eke out a middle class existence as a “worker bee” in American society.  The truth is that most big companies these days do not have any loyalty to their workers and really do not care what ends up happening to them.
To thrive in this kind of environment, new and different thinking is required.  The paradigm of “go to college, get a job, stay loyal and retire after 30 years” has been shattered.  The business world is more unstable now than it has been during any point in the post-World War II era, and we are all going to have to adjust.
So what advice would you give to people that are struggling out there right now?  Please feel free to share your thoughts by posting a comment below…

It’s Coming: “We Are Seeing a Very Material Slow-down Across the Economy”

Mac Slavo
June 5, 2014

Remember back in early 2008 when the Presidential election was in full swing and the majority of financial and political pundits were hailing the booming American economy, record home ownership and never ending growth?
By the end of the year everyone had changed their tune and the United States of America was, as former Treasury Secretary Henry Paulson said, “on the brink” of an unprecedented collapse.
When the stock exchanges turned, credit markets froze up and the U.S. was in the midst of its worst recessionary environment since the Great Depression the oft repeated phrase “nobody saw it coming” was being peddled by the mainstream on every front in an attempt to convince Americans that the crash simply came out of nowhere.
The following analysis from The Market Ticker is a blaring alarm.
This time no one can say we didn’t see it coming.
An interesting paradigm shift is happening here.
I monitor lead times and vendor fill requirements on a fairly regular basis, including from some big e-Commerce folks.
In the last couple of months I’ve noted a rather dramatic shortening of inventory lead times from them — that is, expectation that if you are a vendor you will be able to ship product to them much faster than before.
Some of these shortenings are really dramatic — 50% or more.  Amazon, in particular, is getting extremely aggressive in this regard.
This implies that the inventory drawdown we saw in 1Q GDP revisions is going to continue.

I believe we are seeing a very material slow-down across the economy in final demand.
Last week’s consumer income and spending report strongly suggested this to be the case, and the big retailers, including online retailers like Amazon, are highly attuned to this dynamic and have the data before the government does (since they’re the ones who collect it!)
If they’re making changes like this it is in response to market conditions; they do not want to get stuck with inventory they cannot move, whether their suppliers get paid up front or only on sale or not.  Reality is that product that sits is expensive to warehouse and manage while generating zero revenue; that is a direct assault on the top line of the business and that’s the worst place to take such a hit.
I don’t think 1Q is an aberration given these changes that I’m seeing across the board with various retailers and supply management.  I think it’s economy-wide and in the next quarter or two we’re going to see it show up in bright lights to caterwauls of but nobody saw it coming!
Source: Karl Denninger, Market Ticker
(Emphasis Added)
Essentially, what’s happening here is that business owners don’t want to risk ordering too much inventory all at once like they might do in a healthy economy. This can only be a direct result, as Denninger notes, of market conditions and fear of getting stuck holding inventory they can’t sell.
As was noted last month, the American consumer is strapped and their incomes can no longer support the consumption necessary to keep the economy growing. The latest inventory draw-down confirms this effect, as does the fact that major household retail brands are being absolutely pummeled according to their latest earnings reports.
The government has officially revised the first quarter economic growth numbers (GDP), confirming that the economy shrunk between January and March of this year. By mid summer we should receive confirmation of a second quarter of negative growth, officially taking the U.S. back into recession.
The wind is about to be taken out of the sails of this economy. It should become apparent to all those towing the recovery line in coming months, though they will likely tell us that no one could have known this was going to happen.
We’ve been warned.
By the end of this year it should be crystal clear.

The New World Order And The Rise Of The East

Brandon Smith
Alt Market
June 4, 2014

“Actually, as Winston well knew, it was only four years since Oceania had been at war with Eastasia and in alliance with Eurasia. But that was merely a piece of furtive knowledge, which he happened to possess because his memory was not satisfactorily under control. Officially the change of partners had never happened. Oceania was at war with Eurasia: therefore Oceania had always been at war with Eurasia. The enemy of the moment always represented absolute evil, and it followed that any past or future agreement with him was impossible…” – George Orwell, 1984

Nations, cultures and populations are best controlled through the use of false paradigms. This is a historically proven tactic exploited for centuries by oligarchs around the world. Under the Hegelian dialectic (the very foundation of the Marxist and collectivist ideology), one could summarize the trap of false paradigms as follows:
If (A) my idea of freedom conflicts with (B) your idea of freedom, then (C) neither of us can be free until everyone agrees to be a slave.
In other words: problem, reaction, solution. Two sides are pitted against each other in an engineered contest. Each side is led to believe that its position is the good and right position. Neither side questions the legitimacy of the conflict, because each side fears this will lead to ideological weakness and disunity.
The two sides go to war, sometimes economically, sometimes militarily. Both governments demand that individuals relinquish freedom, independence and self-reliance, a sacrifice that “must be made” so that victory can be achieved. In the end, neither nation nor society has truly won. The only winners are the oligarchs, who sing words of loyalty to their respective camps, while acting in league from the very beginning. The oligarchs, who never intended to target each other in the first place. Their target, their ONLY target, was the citizenry itself — the dumbfounded masses now mesmerized with shock, awe and terror.
The false paradigm method and the Hegelian dialectic are in full force today. Only a few years ago, Russia, China and the United States were considered close economic and political allies. Today, those alliances are being quickly scrapped in order to make room for conflict, a conflict useful only to a select international elite. As I have outlined in numerous articles, including Russia Is Dominated By Global Banks, Too and False East/West Paradigm Hides The Rise Of Global Currency, when one looks beyond all the theatrical rhetoric being thrown around between Barack Obama and Vladimir Putin, the ultimate reality is that the relationship of both governments to the global banking elite is the same.
During both of Obama’s Presidential terms, he has flooded his cabinet with current and former employees of Goldman Sachs, a longtime proving ground for elitist financiers with globalist aspirations.
And who is the primary economic adviser to Vladimir Putin and the Russian state? Why Goldman Sachs, of course!
U.S. and European elites have been calling for a centralization of economic power under the control of the International Monetary Fund, as a well as a new global currency.
Not surprisingly, Putin also wants a new global currency under the control of the IMF.
Obama is closely advised by globalists like Zbigniew Brzezinski, a member of the Council on Foreign Relations and cofounder of the Trilateral Commission, who in his book Between Two Ages: America’s Role In The Technetronic Era states:
“The nation-state is gradually yielding its sovereignty …[F]urther progress will require greater American sacrifices. More intensive efforts to shape a new world monetary structure will have to be undertaken, with some consequent risk to the present relatively favorable American position…”
As long as he has been in power, Putin has been closely advised by Henry Kissinger, yet another member of the CFR and proponent of the Trilateral Commission, who has said:
“In the end, the political and economic systems can be harmonized in only one of two ways: by creating an international political regulatory system with the same reach as that of the economic world; or by shrinking the economic units to a size manageable by existing political structures, which is likely to lead to a new mercantilism, perhaps of regional units. A new Bretton Woods kind of global agreement is by far the preferable outcome…”
Both Kissinger and Brzezinski refer to this harmonized global economic and political structure as the “New World Order.” The fact that the political leaders of Russia and the United States are clearly being directed by such men should not be taken lightly.
China, too, has made demands for a restructuring of the global monetary system into a centralized currency basket under the dominance of the IMF.
China’s ties to the banking elite of London are well documented.
The call on both sides for a new monetary system and the end of the dollar as world reserve seems to greatly contradict the fantasy that the East and West are fundamentally at odds.  The progression towards a world currency and/or economic governance also appears to be growing along with the consolidation of economic and military ties between Eastern nations. This would suggest that the rise of the East and the crippling of Western elements is actually advantageous to global bankers in the long term.
While disinformation agents and media shills have attempted to downplay any danger to the strength of America and the dollar, Eastern governments have been swiftly establishing alliances and decoupling from U.S. influence.
The historic 30-year Russia/China gas deal has, of course, been finalized. This deal is already eating up market space and influencing the way in which the energy trade traditionally behaves.
China and Russia have also expanded on their bilateral agreements made in 2010, which remove the dollar as the reserve currency in transactions between the two nations.
China’s thirst for gold continues, while the country is now building its own gold exchange to rival the U.S. Comex.
Russia has recently established what Putin calls the “Eurasian Economic Union,” a deal which includes Kazakhstan and Belarus, two countries that hold large, freshly discovered oil fields.
In response to the engineered conflict over Ukraine, as well as the “Asian-Pacific Pivot” by the U.S., China has openly called for a new security pact with Russia and Iran.
Let’s also not forget that China is set to surpass the U.S. as the world’s largest economy by 2016, according to the Organization for Economic Co-operation and Development (OECD).
While the rise of the East is being painted in Western circles as a threat to U.S. and NATO dominance, the bigger picture is being hidden from view. Yes, indeed, the consolidation of the East is a considerable threat to the dollar and the U.S. economy — most importantly in the event that China refuses to accept dollars as payment on exports and debts. With the world’s largest exporter/importer refusing to take dollars as a reserve, most nations will inevitably follow their lead.  The argument against this development is, of course, that there is no rational trigger for such a violent fiscal attack. I would remind skeptics that there was no rational trigger for the current strengthened relations between Russia and China until the Ukraine crisis. Is anyone really foolish enough to bet against another direct or indirect conflict between NATO and the East? And is anyone really ignorant enough to assume that said event would not be used as an excuse to cut the legs out from under the dollar completely?
The New World Order players have positioned the East and West for just such a scenario. Why? In my article Who Is The New Secret Buyer Of U.S. Debt?, I give evidence indicating that the Bank of International Settlements and the IMF are preparing the financial world for a new global monetary system, brought into existence by a second Bretton Woods conference. The debasement of the dollar and the rise of the East are NOT obstacles to this plan.  Rather, they are required factors. There can be no truly global economic system without “harmonization”, the demise of the dollar’s world reserve status, and the end of sovereign economic governance.
For those who doubt this scenario, read Paul Volcker’s latest statement, as reported by Zero Hedge.
Volcker, the same man who was directly involved in the destruction of the first Bretton Woods agreement and the final death rattle of the gold standard, is now promoting a NEW Bretton Woods-style agreement in which currencies are pegged to a controlled market system — in essence, a centralized international monetary system. Volcker also suggests that a single nation-based reserve currency like the dollar may be a danger to overall fiscal health.
Volcker is right. The dollar-dominated forex casino and fiat fraud is a danger to the world. Volcker helped make it that way! And what a surprise, the former Federal Reserve chairman has a solution on a silver platter for the American people — all we need is GLOBALcentralization and bureaucratic oversight.
The propaganda is being carefully planted within the mainstream. Christine Lagarde of the IMF now spends the whole of her media interviews inserting the phrase “global economic reset” without explaining exactly what that would entail, while central banking elites like Volcker suggest a Bretton Woods II conference leading to a global monetary authority. In the meantime, Russian government-funded media outlets like RT produce pieces accusing the U.S. of being a nuclear menace while we Americans get to watch manipulative Hollywood films like “Jack Ryan: Shadow Recruit,” which depicts a Russian plot to collapse the U.S. economy.  China and U.S. representatives squabble with each other at geopolitical meetings fueling fears of diplomatic breakdown, while the Pentagon “suggests” they may have to revamp their military strategies in consideration of yet another World War.  Just as in Orwell’s book, 1984, old enemies become allies and then enemies once again, and at the top of the pyramid, it’s all a farce.
The best lies contain elements of truth. The truth here is that the East is forming alliances in opposition to the West, the West is involved in underhanded covert operations all over the planet, and both “sides” are in fact on the verge of a catastrophic battle for supremacy. The great lie is that important details have been left out of our little story. Both sides are merely puppet pieces in a grand game of global chess, and any conflict will ultimately benefit the small group of men standing over the board. They include the international financiers who have influenced the very policy fabric of each government toward a climactic crisis which they hope will finally give them the “New World Order” they have always dreamed of.

Monday, June 2, 2014

VIDEO: Climate Expert Says Global Warming Cult Is Vicious & Tyrannical

VIDEO: Obama's Delusional West Point Speech And The New Cold War With Paul Craig Roberts

VIDEO: Peter Schiff CNBC 4-28-07 [Flashback]

VIDEO: Catherine Austin Fitts - The Slow Burn Economic Collapse

Obama administration targets coal with controversial emissions regulation
June 2, 2014

The Obama administration took aim at the coal industry on Monday by mandating a 30 percent cut in carbon emissions at fossil fuel-burning power plants by 2030 — despite claims the regulation will cost nearly a quarter-million jobs a year and force plants across the country to close.
The controversial regulation, which some lawmakers already are trying to block, is one of the most sweeping efforts to tackle global warming by this or any other administration.
The 645-page plan, expected to be finalized next year, is a centerpiece of President Obama’s climate change agenda, and a step that the administration hopes will get other countries to act when negotiations on a new international treaty resume next year.
“We have a moral obligation to act,” EPA Administrator Gina McCarthy said, in announcing the plan Monday morning.

Full article here

Sunday, June 1, 2014

VIDEO: Bilderberg 2014 Blown Wide Open!!!

VIDEO: Janet Yellen Exposed --The Truth Behind the Myth, Part 1

VIDEO: Obama's Head Liar Fell On His Sword! The Best of Jay Carney

VIDEO: US Govt. Okays Lethal Military Force Against Americans

VIDEO: The Peter Schiff Economic Collapse Report. The Weather is Warming, but Despite the Hype the Economy is Not

VIDEO: X22 Report 4/29/14. Central Bankers Are Running Out Of Time As The Economic Collapse Accelerates -- Episode 353